US line pipe prices trend down with import competition

Wednesday, 19 March 2014 23:42:07 (GMT+3)   |   San Diego
       

In order to compete with aggressive import offers and low demand that is being outpaced by supply, US domestic line pipe mills have been increasingly amenable to deals recently, and spot prices that were once only available for large orders have now spread out to the general market.  In the last week, the “new normal” for US spot prices for US domestic API X-42 prices have settled down by about $1.00 cwt. ($22/mt or $20/nt) into the approximate range of $53.00-$54.00 cwt ($1,168-$1,191/mt or $1,060-$1,080/nt), and sources tell SteelOrbis that the largest orders are booking deals as much as $2.00 cwt. ($44/mt or $40/nt) lower.  However, attractive pricing isn’t enough to inspire stock buys—most customers are continuing to book on an as-needed basis.  

Meanwhile, the average import price for API X-42 line pipe from Vietnamese and Taiwanese mills may have held steady in the past week, but sources say deals as much as $1.50 cwt. ($33/mt or $30/nt) below the general range can be negotiated on larger orders.  The most commonly heard range continues to be around $38.50-$39.50 cwt. ($849-$871/mt or $770-$790/nt) DDP loaded truck US Gulf coast ports.  Order activity and inquiries are on par with levels seen one week ago, and buyers continue to show reluctance in terms of booking speculative tons.

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